DALTON - Three years into his first four-year term, Dalton Mayor James Gray abruptly resigned Thursday, citing his disappointment with the direction council is headed.

Also at the council meeting, member Lorraine Daniels introduced the 2013 tentative budget, which calls for a 2-mill tax increase, from 22.7 to 24.7.

A mill is a $1 tax on every $1,000 of a property's assessed value. Ms. Daniels said the projected tax increase, which would be the borough's first in more than 15 years, would cost an average property owner an additional $35 per year.

Following the brief budget discussion, the focus of the meeting quickly shifted, as Mr. Gray read a short statement, handed in his keys and then walked out of the fire hall, all while council members remained seated at the table.

"After a period of thought and evaluation, I have decided my elected position as mayor of Dalton must come to an end," Mr. Gray, 63, said. "I will only say I am not willing to go in the direction that this council has been going for the past year. Therefore, effective immediately, I am resigning from my position."

Mr. Gray, who also served as the borough police chief for 25 years, told The Times-Tribune his goal as mayor was to recognize people in the community for their goodness. However, he said, he believed council "constantly found ways of destroying people," including their own employees.

He cited concerns about the presence of mold in areas of the Dalton Fire Hall, where borough meetings are held and employees work. Four air-quality reports showed "acceptable levels of mold," according to borough officials. Specifics on when those reports were submitted or when tests were taken were not available Thursday.

"You have got people who are sick that were working in the once-flooded area downstairs," said Mr. Gray, who said he told council years ago to get them out of the building. "They found mold and cleaned it up. But they were down there for years breathing it in."

Council President William Montgomery said he did not know who would serve the remainder of the term, adding that the position needed to be filled within 30 days.

"I still cannot believe it," he said. "I am not happy about it, and I am certainly going to miss him."

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